Advertising

Advertising
• A shop wants to attract more customers or clear stocks, so
it decides to offer special discounts for a period.
It advertises in the daily newspapers to inform the public
of its “sale”.

• A company brings out a new product which is much

more economical than the existing ones in its category.
If the company cannot advertise the product, it would
never be able to enter the market. Any other form of
communication would be long drawn out and uneconomical.

• The Government wants corporate, businessmen and salaried

people to pay taxes. It advertises in newspapers, radio
and television to reach the target audience.
 Who needs advertising?
Companies use advertising to:
• inform people about their products and services
• to make their brand names familiar to the public
 Who needs advertising?
Companies use advertising to:
• to give the company a “personality” which sets it
apart from the others.

• brands
to remind customers about their at the
right time and right place
• to tell the public about improvements in products

• to help their sales force to be more effective

• to reinforce customer confidence in his/her purchase

 Who needs advertising?
Governments and autonomous bodies use
advertising to:
 Inform people about their policies
 Promote birth control
 Educate the masses on health care
 Prevent panic during natural disasters
 Dispel harmful rumours
 Attract foreign investment
 Who needs advertising?
 Public bodies prefer to use professional
advertising agencies because agencies
have the creative talent to explain
complex issues in a way which makes
them interesting, easy to understand
and meaningful.
 Examples: SBI, Bank Of India, LIC etc.
 What is ADVERTISING?

“ the a c s
ction of alling omething

to the a p
ttention of ublic”

WEBSTER’s Dictionary
 What is ADVERTISING?
“ ADVERTISING is the delivery of the
most persuasive product
message at the right time, in
the right place, to the right
person, at the lowest possible cost”
Today’s Product/Brand Manager
 What really is Advertising?
 Paid form of non-personal communication about an
organization, product, service or idea from an
identified sponsor, using mass media to persuade
or influence an audience

 The paid aspect of this definition reflects

the fact that the space or time for an advertising
message must be bought.

 The non-personal component means that advertising

involves mass media (eg. TV, radio, magazines,
newspapers) that can transmit a message to large
groups of individuals, often at the same time.
What really is Advertising?
 The non-personal nature of advertising
means that there is generally no opportunity
for immediate feedback from the message
recipient (except in direct response
advertising)

 Therefore before the message is sent, the

advertiser must consider how the audience
will interpret and respond to the message
 What really is Advertising?
 Advertising is communication of
information and values by an
identified sponsor

 Advertising is the third partner in the

relationship between a consumer and a
product/service.
 Importance of Advertising
There are several reasons why advertising
is an important part of the marketers
promotional mixes.

 Firstly, it is very cost effective method

to communicate to a large audience.

 Secondly, it helps create brand image and

symbolic appeal for the brand which is a
very important for companies selling
product/services that are difficult to
differentiate on functional attributes.
 Importance of Advertising
 Another advantage of advertising is its
ability to strike a responsive chord with
the consumers when differentiation across
other elements of the marketing mix is
difficult to achieve.

 Popular advertising campaigns attract

customers attentions and can help
generate sales. For example pepsi’s – ‘Oye
bubbly’, ‘Mera number kab aye ga’, Asian
Paints – ‘Badiaya hai’, Alpenleibe -Lage
raho, etc
 Importance of advertising
 The nature and purpose of advertising differs from
one industry to another and/or across situations.

 The targets of an organization's advertising efforts

often vary as do the advertising role and function in
the marketing program.

 For eg. One advertiser may seek to generate

immediate response or action from customers,
another may want to develop awareness or positive
image for its products or service over a longer
period.
Role of Advertising in Brand Promotion

 Information and persuasion

 Introduction of new brand or brand
extensions
 Building and maintaining brand loyalty
among consumers
 Creating an image and meaning for a brand
 How does advertising work?
The stages in consumer purchase process

Need recognition

Information search

Evaluation of options

Outlet selections

Purchase

Post purchase evaluations

How does advertising work?
Awareness

Comprehension

Conviction

Action
How does advertising work?
Awareness

Interest

Desire

Action
 How does advertising work?
Hierarchy of effects

100% target audience

75% aware of the product

50% show some interest in the product

30% preferred the product

25% tried the product

15% Repurchase
 Importance of advertising
 What advertising does is create awareness,
interest, desire and drives the consumer
to the shop.

 For any advertising to be successful, it is

essential that the service or product must be
superior or meaningfully different; certainly,
at the very least, it must be at least
satisfactory.

 If it is a public message, then it must be a

credible proposition.
 Importance of advertising
 Any amount of good creative advertising
can never help in selling a brand or a
product of inferior quality.

 At the most advertising will help in

inducing a trial from the consumers,
thereafter it is entirely on the quality
of the product or brand.
 Advertising
Some do’s
 Advertising should be informative

 Advertising should be entertaining

 Advertising should be involving

 Advertising
Some don’ts
 Advertising should never over claim any
benefit in a product or a brand.
 Never try to put down or talk down your
consumers in manner that will insult them.

 Try not to compare your brand with a

competitor and try not to show your
competitor in bad light.
 Advertising
Some don’ts
 In case you do any comparison with your competitor or show your
competitor it should be done in a intelligent and tactful manner
that such that it is memorable and not in bad taste.
Avis v/s Hertz (Rent-a-car)
 How is good advertising created?
 Creating good advertising is to build
the most meaningful relationship
between the Brand and its customers.

 For creating meaningful advertising one

must know “Why do people buy?”
 Why people buy?
 People buy a product because they
have a need for it
“ I need a pressure cooker because I
have to lay food on the table
everyday”

 People buy a brand because they have

a relationship with it.
“ I will buy a Hawkins Pressure Cooker
because I can trust Hawkins”.
 Types of benefits

a) Objective benefits

b) Subjective benefits

c) Values-oriented benefits
 Objective benefits
 These are tangible, physical and measurable
 These are in the product
 They are what you get by using it

Example - “Hawkins
pressure cooker
cooks quickest with
least trouble and
greatest safety”
 Subjective benefits
 These are in the consumers mind
 These are perceptions. These are what the
consumer believes she will get as a result of
the objective benefit.

 Example - “ Cooking with

Hawkins will make me
feel that I am fulfilling
my role as a wife better”
 Values oriented benefits
 These appeal to the consumers deepest concerns, their
basic drives as individual human beings.

 There are only a few of them - power, security, social

acceptance, status, greed, sex, survival - and they are
very powerful.

 Example - “Owning the beautiful Toyota Corolla car

makes me feel special, a person clearly of a higher
status with a more refined taste”
Classification of Advertising
 Advertising in the consumer market
- National Advertising
- Retail/Local Advertising
- Brand Advertising
- Primary/Secondary demand advertising
- Political Advertising
- Directory Advertising
- Direct-Response Advertising
- Public Service Advertising
- Interactive Advertising

 Advertising to Business & Professional markets

- Business to Business Advertising
- Professional Advertising
- Trade Advertising
What client expect from their advertising?
 “Innovative solutions that Break through the clutter
Beat the competition, Stretch and magnify budgets”

 “Different, Innovative”

 “Great creative and media that offers full value

at prices at least as good, if not better, than
the competition”.

 “The most cost-effective and innovative way to

successfully reach and communicate with consumers”.
 Biggest risk in advertising
 SAFE CONVENTIONAL ADVERTISING IS THE
BIGGEST RISK OF ALL

It doesn’t get seen. It doesn’t get remembered.

It doesn’t cause any reaction.
Safe advertising just lies there quietly, hoping
no-one will notice it. And no one does.

Half my advertising budget is wasted. The problem is

I don’t know which half.
John Wanamaker, Advertising & Retailing Pioneer
Should we take risks in advertising?
 Yes, but wisely. Foolish risks are for fools

 Smart businessman take only calculated risks

 One can be smart by getting the basics right -

defining target clearly, appealing to the right values,
and creating a seamless fusion of product and user.
T H A N K Y O U !!